Intraday stock and option comments have to start with the jump this morning in the market direction. Yesterday’s strong move higher is being joined by today’s news on the earnings front combined with news out of Europe that Spain will seek help. I am not completely sure why Spain asking for a bailout is good news but we have to take what we get. Meanwhile though William in his Market Direction Portfolio made changes which members can see here. From where I sit I can see the market direction trying to take out the previous highs. Just last week it looked like the 50 day moving averages might break on the S&P and the Dow. That little correction appears over as investors obviously want to buy into this latest rally.
Stock and Option Coca Cola Stock
I did more Put Selling this morning on Coca Cola Stock which you can see in my Coca Cola Stock trades alerts that I sold into Nov again at $37.50 for .65 cents which so far seems to be the high of the day. The problem for investors was reading the Coca Cola earnings this morning which showed strength across the globe but the overall gross earnings did not meet analysts expectations. I would expect more turmoil in KO Stock is ahead so if you didn’t get in this morning I am sure there will be more opportunities ahead for put sellers with KO Stock.
Stock and Option AT&T Stock (T Stock)
AT&T is making a bit of a jump this morning but my view remains the same. I am staying with Put Selling at my chosen strikes. If T Stock recovers and returns to its old highs that will suit me fine but anywhere above $36 is stretching the valuation of t Stock.
Stock and Option BNS Stock
I entered my trade on BNS stock on Friday as readers know. I like this Canadian bank which trades on both New York and Toronto, but being a Canadian I did my trades on the TSX. I will continue to sell puts on any weakness down to a low of $52 where I will stop.
Stock and Option Intel Stock
Intel Stock looks like it finally has found its support right around the $22 level. This is the long-term support zone for Intel Stock and on weakness from that point, I will keep Put Selling. My strategy continues the same with all my in the money puts on Intel Stock, namely roll puts and reduce the number of contracts. I will roll down when the number of contracts is reduced sufficiently. I will try to get an article up on how to roll in the money puts for profits and protection.
Stock and Option IWM ETF
This rally in stocks is really more a large cap rally. The Russell 2000 is still under pressure although it had a nice spike up this morning. The IWM is the ETF I am continuing to do the Trading For Pennies strategy which is in the members section of my website. I will review all the emails and charts I have received from members today and post all my comments today as well. I am also releasing my analysis of my trades from yesterday shortly.
Stock and Option Johnson and Johnson Stock
My Johnson and Johnson stock (JNJ) trades are continuing to do well. Despite what analysts think, this stock is widely held by institutional investors and they are not going to sell at this stage. JNJ Stock remains a stable stock with a good dividend and that is what institutional investors at present want to own. I am continuing with the Put Selling at any sign of weakness as has been the case last week.
I bought to close my January 2013 $57.50 naked puts this morning for .04 cents. These puts were sold in November 2011 for $5.25 when Johnson and Johnson Stock was at $61.20. Despite what analysts believe or love to print about, Johnson and Johnson Stock has returned 13% in capital appreciation since last November and that does not include the dividend. This is part of the reason why despite the recent downgrades investors are reluctant to sell their shares. I look at every downgrade as at opportunity for my Put Selling in Johnson and Johnson Stock.
Stock and Option Intraday Summary for October 16 2012
That conclude the Stock and Option Intraday summary for today. I have a lot of articles in the works and should get some posted today. I appreciate all the emails and I am trying my best to get back to as many as I can. Anyone who has not received a reply for sometime please drop me a reminder. I have an article for the poor chap holding Facebook Stock and I will get that posted.